Client compensated for funds kept by lawyer

Misappropriated funds were proceeds from sale of client's house.

July 3, 2012 at 11:15PM

A reader recently received some welcome news. Craig Taylor, of New Brighton, was awarded a $59,675 payout from the Minnesota Client Security Board in June as compensation for money kept by his divorce attorney, Deno Walter Berndt. Taylor had filed a complaint with the Office of Lawyers Professional Responsibility after Berndt received funds from the sale of Taylor's house and failed to pass them on, Taylor said. Berndt took "affirmative steps to conceal receipt of the funds," according to a disciplinary petition by the Office. Berndt also failed to respond to discovery requests and notify Taylor of a hearing, which led to a default divorce judgment, Taylor told Whistleblower. Berndt was disbarred in March over his handling of Taylor's case. Read Berndt's disbarment here. Once there, click on "Petition" to read the allegations that lead to the disbarment. Read a 2006 disciplinary action taken against Berndt here. Click here to read more about the Minnesota Client Security board and who may file a claim.

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Jane Friedmann

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